The County of Orange has persuaded the state’s Department of Finance to lower its demand for unused housing funds from the county’s former redevelopment agency, reducing by $29.6 million the amount the county must pay.

The county received word this week that, after reviewing additional information provided by the county, the Department of Finance agreed that $20.4 million is the correct amount that the county must make available to taxing entities, said Julia Bidwell, deputy director of OC Community Resources.

The state had initially demanded $50 million in a letter dated Nov. 14. The county, however, asserted that the Department of Finance made a technical error by double-counting some of the county’s low- and moderate-income-housing funds, Bidwell said.

The two sides met Dec. 7 to review extra documentation provided by the county. Based on this “additional and clarifying information,” the state revised its demand to the lower amount, according to a Dec. 21 letter from the Department of Finance.

The $20.4 million payment, due by Monday, already has been approved by the county’s oversight board, Bidwell said. The board oversees the wind-down of the county’s former redevelopment agency.

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